BREAKING: Eskom Technically Insolvent

Eskom is broke, that is according to the Department of Public Enterprises. PICTURE: M&G

CAPE TOWN: Eskom is broke, that is according to the Department of Public Enterprises.

The department says Eskom is technically insolvent and will cease to exist at current trajectory by April 2019.

In his State of the Nation Address last week, President Cyril Ramaphosa announced plans to split the struggling power utility into three entities. A decision which has not been widely welcomed by labour unions and other opposition parties such as the EFF.

Meanwhile, Eskom’s has been pleading with energy regulator, Nersa for a 15% annual tariff increase for the next three years.

Debt at the power utility which stood at R380-billion at the beginning of last year has since ballooned to over R419-billion.

#BREAKING: dept of Public Enterprises says Eskom is technically insolvent and will cease to exist at current trajectory by April 2019. ( However please note that Treasury will in all likehood bail it out in Budget speech next week) @enca ##ESKOM